Retailing (Germany):
More favourable business climate

The clear upswing in the business situation in retailing is due to the improved assessments in the non-food area. In the food and beverage sector, the appraisals were, as before, slightly negative. The outlook was also only brighter in the non-food sector. On average for all retail sectors, inventory pressure increased again somewhat, which was expressed in the growing number of restrictive order plans. The responses indicate an accelerated increase in prices in the coming months, but still mainly in the food and beverage sector. The share of firms that expects to take on additional staff has increased again. In contrast, eastern German retailers classified their current business situation again less favourably than in September. With weak demand, inventory levels have increased. Although pessimism has weakened with regard to the business outlook, order plans are increasingly geared towards cut-backs. Prices are likely to increase, according to the survey responses.